RLI CORP — Director's Dealing 2011

May 6, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2011-05-05

Reporting Person: STONE MICHAEL J (President RLI Insurance Compan)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2011-05-05	Stock Option	$58.73	A	8000	Acquired	2019-05-05	Common Stock (8000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	103225.0464	Direct
Common Stock	18002.4541	Indirect
Common Stock	21010.0572	Indirect
Common Stock	2337.9433	Indirect
Common Stock	11423.8459	Indirect
Common Stock	4413.23	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option	$37.54	2015-05-05	Common Stock (30000)	30000	Direct
Stock Option	$43.15	2016-05-04	Common Stock (27500)	27500	Direct
Stock Option	$49.09	2017-05-03	Common Stock (31500)	31500	Direct
Stock Option	$43.00	2018-05-01	Common Stock (34000)	34000	Direct
Stock Option	$39.90	2017-05-07	Common Stock (32000)	32000	Direct
Stock Option	$49.34	2018-05-06	Common Stock (6000)	6000	Direct
Stock Option	$49.20	2018-08-02	Common Stock (6000)	6000	Direct
Stock Option	$50.26	2018-11-01	Common Stock (6000)	6000	Direct
Stock Option	$55.28	2019-02-01	Common Stock (6000)	6000	Direct

Footnotes

F1: Pursuant to option schedule wherein 20% of the aggregate number of shares granted may be exercised commencing one year from grant date and each year thereafter in 20% increments.

F2: Ownership reflects dividend reinvestment.

F3: Ownership reflects shares allocated to ESOP participant's account and dividend reinvestment.

F4: Stock Option grant price adjusted to reflect $7 RLI extraordinary dividend paid 12/29/10.